Sample Financial Policy

Revenue

1. 
   All revenue will be receipted in accordance with standard industry practices.
   
2. 
   Revenue on products will be categorized using the Co-operative’s Point of Sale system and accrued to the end of each month.
   
3. 
   If revenue requires a bank deposit, it will be made within one week by a staff member.
   
4. 
   The Executive Director with approval of the Board will set the goals for the fiscal year. This goal will allow the Finance and Audit Committee to compose an Annual budget.
   

7. 
   Expenses
   

1. 
   All employees will be remunerated based a salaried arrangement and funds will be disbursed on a bi-weekly schedule and are subject to appropriate deductions (e.g. taxation, benefits contribution, etc.).
   
2. 
   All expenses related to the operation of the Co-operative will be submitted to the bookkeeper and released upon approval of the Executive Director. Expenses submitted by the Executive Director must receive approval by a Director with signing authority before funds are released. All expense claims will be filed with that month’s financial report.
   
3. 
   Expenses directly to the Organization for capital expenditures under $5000 can be made directly by the Executive Director or the bookkeeper with approval of the Executive Director. Expenses exceeding $5000 will require approval of the Board of Directors. A bill and receipt will be required and filed with that month’s financial report.
   
4. 
   All expenses will be individually accounted on monthly financial statements and consolidated on year-end reports, budgets, or audited financial statements using standard accounting practices.
   
5. 
   Expenses incurred by employees and Directors should be made following consultation with the Executive Director to ensure they are reasonable. The individual is responsible for upholding this process and filing an expense claim; failure to do so may result in non-payment.
   

8. 
   Review
   

1. 
   The Finance and Audit Committee will draft and submit the Financial Policy to the Board of Directors once per annum prior to the AGM.
   
2. 
   The Financial Policy will require acceptance, by general resolution, of the Board of Directors at the Board Meeting before the AGM.
   
3. 
   It will be the responsibility of the Executive Director to oversee the administration of the procedures of the Financial Policy.